Cotton trading on first day after Eid holidays remains firm

Eid holidays kept the activity of spinning sector dull while forward deals that have been matured before Eid change hands. Non-availability of transportation has been hindering the deliveries. During trading session after Eid holidays and on first day, the lint prices stood firm, traders at cotton market said. Around 300 bales changed hands.

The Karachi Cotton Association (KCA) spot rate remained intact at Rs 6,700 per maund with forward deals for better lint in focus, fibre traders said.

The buyers in Sindh and Punjab stations remained on holiday mood while deals on online basis changed hands between leading buyers and sellers on premium price offered by the ginners during the trading session.

According to senior trader, Ghulam Rabbani, the second grade of lint for blending purpose would remain in higher demand along with growing demand for better grades of lint on slightly higher price by the textile sector.

The better quality of lint on back of growing demand would entice buyers to pay premium price after becoming normal trading activities.
Ginners withholding fine lint were steadfast and are not seemed to bow down before the buyers’ offers, as they were confident for the price that would not go below spot rate.

He said that the domestic buyers have started accepting a bit higher prices as the leading buyers made forward deals at around Rs 6,975 per maund.
There were signs that textile sector would likely to import the quality cotton in near future for meeting demands.

The ginners of Punjab remained reluctant offering quality cotton to the buyers below Rs 6,975 per maund while ginners of Sindh offered raw lint to the buyers around Rs 5,975 per maund, depending on trash level.

While in Sindhi, thin business has been noticed with around 200 bales of upper Sindh changed hands at Rs 6,650 per maund, and about 100 bales of southern Punjab at Rs 7,000 per maund.